Cracking the Code: On Digital Trade Fraud

Cracking the Code: On Digital Trade Fraud

2021-06-06T07:59:39+00:0031 May, 2021|Technology|

2020: The Perfect Storm for Bill of Lading Fraud

As reported in the press, global banks were stunned in 2020 by a series of commodity trader collapses after instances of fraud were exposed during the pandemic crisis. Many banks put their trade finance divisions under review as they sought to recover billions of dollars in debt. In July 2020, the Global Trade Review reported fraud claims, including fabricated bills of lading, suspicious transactions, and the loss of $192 million, made by the French bank, Natixis, and Malaysian bank, CIMB, against oil trading conspirators, Sugih Energy and Hontop Energy, respectively. 

The COVD-19 pandemic has forcibly highlighted the practical limitations of paper bills of lading and other physical representations of critical documents. If banks, which are considered some of the most highly regulated and secured establishments, lack protection from a growing number of vulnerabilities,  how do other organizations and businesses with fewer resources protect themselves from document fraud in the digital era? 

Fraud is increasing as the volume of online data is growing, thus expanding information exposure, making it extremely challenging to preserve confidence.

What security measures need to be applied to support digital document transactions?

Risky Business: Rethinking (Paper) Business Models in a Digital World 

The foundation for digital document transactions is trust, whether it be between individuals, institutions, or a combination of both. For the mainstream to gain confidence in digital transactions, a new technological approach must embrace the trusted and unique properties of traditional paper as a resource: validity and possession. 

  1. Validity. The new technological approach must deliver reliable transactions. Did the people involved with the transaction sign the document? Are the signatures authentic? How were they validated? Every entity along the trade transaction has to have complete confidence in the digital solution.  
  2. Possession. Once a document is signed, it cannot be altered. Digital trade requires unique control over the order in which a sensitive document is sent, with a single entity being in possession of that document at any given time.
“For the mainstream to gain confidence in digital transactions, a new technological approach must embrace the trusted and unique properties of traditional paper as a resource: validity and possession.”

WAVE BL: An Intelligent Network to Outsmart Threat Actors 

WAVE BL is the only solution that replicates the unique properties of paper — validity and possession — that make digital transactions a trusted resource for organizations. 

Digital signatures validate the authenticity and integrity of documents and, in many ways, simplify the process of doing so.  

WAVE BL’s solution ties digital signatures to the blockchain, providing a full-proof solution to transferring data securely. Possession begins with the implementation of WAVE BL’s blockchain. The recording and verification by blockchain of a document’s travel path and possession prevent any single participant from cheating the system. WAVE BL standardizes the verification of workflows associated with transferring documents directly between buyers and sellers. 

The WAVE BL network increases an organization’s security by providing a level of trust that ties stakeholders of the digital supply chain to the data transferred among them.

“WAVE BL is the only solution that replicates the unique properties of paper — validity and possession — that make digital transactions a trusted resource for organizations.”

The Bottom Line: WAVE BL fits the bill

The WAVE BL network provides a new level of security that nearly eliminates all risks of digitized document fraud. From a CISO’s point of view, this is the solution that the world has been waiting for, taking trade digitization a significant step forward. It is no longer a question of if or when applications like WAVE BL will exist. They already do. 

The standard for digitization is now.

Yigal Elefant

Yigal Elefant

CISO
The WAVE BL network provides a new level of security that nearly eliminates all risks of digitized document fraud. From a CISO’s point of view, this is the solution that the world has been waiting for, taking trade digitization a significant step forward.

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